December 16, 2024
SEC signals it would reject spot Solana ETF filings and pause new crypto ETF approvals #NewsETFs

SEC signals it would reject spot Solana ETF filings and pause new crypto ETF approvals #NewsETFs

CashNews.co

Key Takeaways

  • The SEC plans to reject spot Solana ETF applications and pause new crypto ETF approvals.
  • The SEC’s decision impacts multiple asset managers seeking to offer Solana-based investment products.

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According to FOX Business reporter Eleanor Terret, the SEC has informed at least two prospective ETF issuers that it will reject their applications for a spot Solana ETF. Sources also indicate that the SEC is unlikely to approve any new crypto ETFs “under the current administration.”

The latest information comes as multiple asset managers seek approval for Solana-based investment products. Grayscale Investments recently filed to convert its Solana Trust, which manages $134.2 million in assets, into a spot ETF under the ticker GSOL. The firm submitted its application on Tuesday.

Several other asset managers, including VanEck, 21Shares, Bitwise, and Canary Capital, have filed similar applications for Solana ETFs, demonstrating industry-wide interest in bringing these investment vehicles to market.

The SEC’s position affects a broad range of anticipated crypto ETF applications beyond Bitcoin and Ethereum, including those tracking SOL and XRP.

The regulator has previously expressed concerns about Solana’s potential classification as a security, which could affect the ETF approval process.

In August, the SEC formally rejected Cboe BZX’s filings for two Solana spot ETFs due to concerns about Solana’s classification as a security.

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